Question 1

Morgan Steel Company leases a warehouse in Jacksonville,Alabama to serve Deep South markets that were large enough and stable enough to make a long-term commitment to fixed facilities.This is a

Accepted Answer

The lease of the warehouse by Morgan Steel Company for serving only its own markets indicates that it is a private warehouse.

Question 2

If a microchip in a computer at the Pentagon failed,which method of transportation would be most appropriate to use to replace the chip immediately if one could get the new chip only from New York City?

Accepted Answer

Airway transportation would be the most appropriate choice as it is the fastest mode of transportation and would ensure that the replacement chip is delivered quickly to the Pentagon. Using a government vehicle, truck, or railroad would take too long to get the chip from New York City to Washington D.C. Waterway transportation could also be an option, but it may take longer than airway transportation and may not be as reliable in terms of timing.

Question 3

What function of physical distribution enables companies to compensate for dissimilar production and consumption rates and stabilize prices and availability of seasonal items?

Accepted Answer

Warehousing allows companies to store products until they are needed, which helps to balance out the differences in production and consumption rates. This function is crucial for managing seasonal items, ensuring that they are available when demand is high and helping to stabilize their prices by allowing for storage during off-peak times.

Question 4

Johnson Controls hires a consultant to assess its materials handling procedures.The consultant recommends the implementation of ____ if they want easier movement of items between internal destinations in the warehouse.

Accepted Answer

The answer of Johnson Controls hires a consultant to assess...

Question 5

Kawasaki places several motorcycles in "pods" in order to load them efficiently using forklifts.This system of materials handling is called

Accepted Answer

The system described in the statement where motorcycles are placed in pods to be loaded with forklifts is an example of unit loading. Unit loading involves grouping individual items together in a single load, such as on a pallet or in a container, to be more efficiently processed and transported.

Question 6

Assuming everything else equal,the most cost-efficient way for British Petroleum to transport crude oil from remote oil drilling sites in central Alaska to shipping terminals on the Alaskan coast would be

Accepted Answer

Pipelines are generally the most cost-efficient way to transport large volumes of crude oil over long distances. They require less energy and have lower operating costs than other modes of transportation such as tanker trucks or railroads. Additionally, building a pipeline infrastructure would likely have long-term benefits for BP's operations in Alaska, reducing transportation costs in the long run.

Question 7

ClearChem is a producer of chemicals used in car detailing and painting.Because of the volatility of their chemical products when exposed to dirt and heat,ClearChem operates its own facilities for storing and shipping its products.ClearChem's facilities are most likely known as

Accepted Answer

Since ClearChem operates its own facilities for storing and shipping its products, it is most likely that they have private warehouses as opposed to public warehouses or distribution centers. Product storehouses and megawarehouses are not commonly used terms in the logistics industry.

Question 8

Garcia Wholesale Plumbing has seen its sales in the Southeast triple in the past two years.Materials handling director Barb Peterson announces plans to the board for an Atlanta facility that will combine shipments received from Garcia's 25 suppliers for nearly immediate shipment to plumbing stores and contractors in the region.This new facility would be best classified as which of the following?

Accepted Answer

The facility described in the scenario combines shipments received from multiple suppliers and immediately ships them out to customers in a specific region. This is the definition of a distribution center, making option D the best choice. A sales office would primarily focus on selling and promoting products, which is not the main purpose of this facility. A public warehouse generally stores goods for various customers without shipping them out immediately, while a field public warehouse is typically set up on a temporary basis for a specific project. A bonded warehouse is a type of facility where goods are stored under the supervision of customs officials until necessary duties or taxes are paid, but this doesn't apply to the scenario described.

Question 9

A public warehouse is a

Accepted Answer

A public warehouse is a business that leases storage space and related facilities for distribution to other firms. Therefore, choice A best describes a public warehouse.

Question 10

The Diamond Salt Company needs to transport 20 tons of salt from Baton Rouge,Louisiana,to Cincinnati.Which of the following methods would be the cheapest for transporting this cargo?

Accepted Answer

Waterways would be the cheapest method for transporting salt as it is a heavy cargo and can be easily transported by barges or ships through rivers, canals, or coastal routes at a lower cost compared to other modes of transportation that require more fuel and hauling costs.

Question 11

Which of the following physical distribution functions involves design and operation of facilities for storing goods?

Accepted Answer

Warehousing involves the design and operation of facilities for storing goods.

Question 12

Air-Tech management learns that last month's production run of heaters at its Newark plant is defective and announces a recall of the specific models produced.To handle the large number of products it expects to receive for replacement of the defective thermostats,Air-Tech will probably need to add a ____ to its distribution network.

Accepted Answer

The answer of Air-Tech management learns that last month's production...

Question 13

Which mode of transportation hauls more freight than any other?

Accepted Answer

Railroads haul the largest amount of freight compared to other modes of transportation. They are especially efficient at hauling heavy goods over long distances. According to the Association of American Railroads, railroads move over 40% of all freight transported in the United States.

Question 14

____ adds time and place utility to a product by moving it from where it is made to where it is purchased and used.

Accepted Answer

Transportation is the process of moving a product from where it is made to where it is purchased and used. It adds time and place utility to the product by transporting it to the desired location. Warehousing, containerization, distribution, and materials handling are also important aspects of the supply chain, but they do not directly add time and place utility to the product.

Question 15

Fansteel manufactures parts used in jet engines,which it sells to companies such as Boeing.When shipping products to Boeing,Fansteel seals the parts in 8' × 8' × 40' boxes for shipping to decrease loss and damage.This method of materials handling is

Accepted Answer

The method described is containerization, which involves sealing goods in containers (in this case, 8' × 8' × 40' boxes) for shipping.

Question 16

Magnetic Springs wants to ship its bottled water with the most flexible schedules and routes of all transportation modes.Magnetic Springs should use ____ as its transportation mode.

Accepted Answer

Trucks offer the most flexibility in schedules and routes compared to other modes of transportation listed. They can easily access different regions and can be scheduled and rerouted according to demand. Airways may offer some flexibility in schedules but would be more expensive and is not generally used for shipping bottled water. Railroads, waterways, and pipelines have fixed routes and schedules, making them less flexible for a company like Magnetic Springs.

Question 17

Managers and consultants at Colgate-Palmolive are meeting to discuss better ways to package its products to reduce damage and make loading more efficient.The primary function they are trying to improve is

Accepted Answer

The discussion around packaging products to reduce damage and improve loading efficiency suggests a focus on the materials handling function. The goal is to ensure that products can be moved around without being damaged in the process, making it a priority to optimize how they are packaged and handled.

Question 18

Kolder Inc.is using a new just-in-time inventory management system that requires ordering smaller quantities of parts more frequently.The success of its business depends significantly on receiving these parts very quickly,so like many other companies using just-in-time,Kolder Inc.is relying more on the ____ mode of transportation despite its expense.

Accepted Answer

Just-in-time inventory management requires quick delivery and air transportation is the fastest mode of transportation, making it the best choice for companies relying on this system, despite its expense. Railroads, pipelines, and waterways are all slower modes of transportation, while trucks can be unreliable due to traffic and other delays.

Question 19

Madison is responsible for the freight transportation of products sold by Richland Tech,a producer of cooking oils sold to large institutions.Since Madison needs to schedule freight transportation with the mode that provides the most flexible schedules and routes,which of the following should she use?

Accepted Answer

Trucks provide the most flexible schedules and routes compared to other modes of transportation. They can reach almost any location and can offer multiple delivery options such as same-day delivery or next-day delivery. Warehousing may provide storage facilities for the products, but it does not provide transportation. Waterways, pipelines, and railroads have fixed routes and schedules, which may not be flexible enough for Madison's needs.

Question 20

WTA is a manufacturer of very large blades used in energy-reducing wind turbines.What is most likely the most expensive physical distribution function associated with the WTA product?

Accepted Answer

Transportation of the product is likely to be the most expensive physical distribution function associated with the WTA product, as these large blades require specialized transportation methods and equipment, as well as potentially long distances for delivery to wind turbine sites.

Quiz 15: Marketing Channels and Supply-Chain Management